Clear Lake Credit Corporation lends funds to Donny,a consumer,to apply to the cost of a boat,which is the collateral for the loan.An enforceable security interest requires

Question

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The Uniform Commercial Code allows for either a written agreement or the lender's possession of the collateral to establish an enforceable security interest. Choice A is incorrect because possession by the lender alone is sufficient. Choice C is incorrect because the boat seller's acknowledgement is not necessary for a security interest. Choice D is incorrect because possession by the borrower is not enough to establish a security interest.

Clear Lake Credit Corporation Lends Funds to Donny,a Consumer,to Apply